Frequently Asked Questions

Ekubo — Everything You Need to Know

Find answers to common questions about swapping tokens, providing liquidity, fees, networks, the EKUBO token, and more on Ekubo Protocol.

Ekubo is a next-generation concentrated liquidity automated market maker (AMM) deployed on Ethereum mainnet, Arbitrum Layer 2, and Starknet. Unlike traditional AMMs that spread liquidity across all price ranges, Ekubo allows liquidity providers to concentrate capital in specific price bands, resulting in dramatically lower slippage for traders and higher fee income for providers. Ekubo is designed for maximum capital efficiency in decentralized finance.

To swap tokens on Ekubo, follow these steps: (1) Visit the official Ekubo interface. (2) Connect your compatible wallet — MetaMask or WalletConnect for EVM networks, Argent or Braavos for Starknet. (3) Select the "From" token and enter the amount you want to swap. (4) Select the "To" token you want to receive. (5) Review the quoted price, fee, and slippage. (6) Click "Swap" and confirm the transaction in your wallet. Ekubo automatically routes your trade through the most efficient liquidity pools to ensure the best possible price.

Ekubo supports a wide range of wallets. For Ethereum and Arbitrum (EVM networks), you can use MetaMask, Coinbase Wallet, Rainbow, WalletConnect-compatible wallets, and most major browser extension wallets. For Starknet, Ekubo is compatible with Argent X and Braavos wallets. Always ensure you are downloading wallets from official sources and keep your seed phrase private.

Ekubo Protocol is available on three networks: (1) Ethereum Mainnet — the original and most battle-tested deployment of Ekubo, with the deepest liquidity for major token pairs. (2) Arbitrum — an Ethereum Layer 2 rollup offering significantly lower gas fees and faster transaction confirmation times while inheriting Ethereum's security. (3) Starknet — a ZK-rollup Layer 2 where Ekubo was natively developed, offering the lowest possible transaction costs and ultra-fast throughput. Each network has its own set of liquidity pools with various fee tiers.

Ekubo itself does not collect protocol fees — 100% of trading fees go directly to liquidity providers. Ekubo offers multiple fee tiers for liquidity pools: 0.01% for highly stable pairs (e.g., stablecoin-to-stablecoin), 0.05% for correlated assets, 0.3% for standard token pairs, and 1% for exotic or low-liquidity pairs. When you execute a swap on Ekubo, you pay the fee of the specific pool(s) your trade is routed through. Gas costs are separate and depend on the blockchain — Starknet typically offers the lowest gas fees.

Ekubo is designed with gas efficiency as a core principle. On Starknet, Ekubo transactions cost a fraction of a cent due to the ZK-rollup architecture. On Arbitrum, costs are also significantly lower than Ethereum mainnet. The Ekubo smart contract architecture is highly optimized, using singleton pool design and efficient storage patterns to minimize on-chain computation and reduce gas usage compared to alternative DEX implementations.

Concentrated liquidity is the core innovation of Ekubo. Instead of spreading liquidity evenly across all possible prices (from zero to infinity), liquidity providers on Ekubo can allocate capital within a specific price range — for example, providing ETH/USDC liquidity only between $1,800 and $2,200. This means the same amount of capital generates far more trading fees than traditional AMMs, since it is all "active" within the range where most trading happens. When the price moves outside your chosen range, your position stops earning fees until the price returns.

To provide liquidity on Ekubo: (1) Connect your wallet on the Ekubo interface. (2) Navigate to the "Pool" section. (3) Click "New Position" and select the token pair you want to provide liquidity for. (4) Choose a fee tier that matches your strategy (tighter ranges typically suit more stable pairs). (5) Set your upper and lower price bounds for your concentrated liquidity position. (6) Enter the amount of each token to deposit. (7) Review and confirm the transaction. Once your position is active and the market price is within your range, you will start earning trading fees proportional to your share of the pool.

Impermanent loss (IL) occurs when the price ratio of tokens in a liquidity pool changes compared to when you deposited. On Ekubo, concentrated liquidity can amplify impermanent loss compared to traditional AMMs because your liquidity is more tightly bound to a price range. However, the higher fee income from concentrated positions can more than offset impermanent loss if you choose your range wisely. Strategies like wider ranges reduce IL exposure at the cost of lower capital efficiency. It is important to understand IL before providing liquidity on Ekubo or any AMM.

EKUBO is the native governance token of Ekubo Protocol. EKUBO token holders have the power to participate in on-chain governance decisions that shape the future of Ekubo. This includes voting on protocol fee parameters, approving new pool types or extensions, allocating treasury funds, and other key protocol upgrades. The EKUBO token represents ownership and control over the Ekubo protocol and its future development. Holding EKUBO gives you a direct voice in how Ekubo evolves.

Ekubo uses a decentralized on-chain governance model powered by the EKUBO token. Any EKUBO holder can create a governance proposal. Proposals are voted on by token holders during a defined voting period, with votes weighted by EKUBO balance. If a proposal reaches the required quorum and a majority votes in favor, the proposal can be executed on-chain. This ensures that Ekubo Protocol remains community-controlled and censorship-resistant. You can view active proposals and governance activity in the Governance section of the Ekubo interface.

Ekubo smart contracts have undergone rigorous security audits by leading blockchain security research firms. The Ekubo codebase is open source, allowing the community and independent researchers to review and verify the code at any time. However, as with all DeFi protocols, there are inherent risks including smart contract vulnerabilities, oracle manipulation, and market risks. Always verify you are using the official Ekubo interface at ekubo.app, never share your seed phrase or private keys, and only invest what you can afford to lose.

To stay safe on Ekubo: (1) Always access Ekubo through the official URL at ekubo.app — bookmark it. (2) Double-check token contract addresses before swapping unfamiliar tokens. (3) Start with small amounts when trying new pools or strategies. (4) Use a hardware wallet for large positions. (5) Never approve unlimited token spending unless you understand the implications. (6) Follow the official Ekubo Twitter and Discord for security announcements. (7) Be wary of any third-party sites claiming to be Ekubo — phishing attacks are common in DeFi.